💰 Canada’s Oldest Crypto Custodian Reaches $2 Billion in Assets Under Custody

Crypto Custody Firm 'Balance' in Canada Attains $2 Billion in Assets Under Custody Amidst Recent Crypto Market Recovery

Canadian crypto storage company, Balance, now holds $2 billion in assets as the market bounces back.

Last updated: February 23, 2024 09:07 EST | 2 min read

Balance, a digital asset custodian based in Canada, has revealed that it has once again achieved $2 billion in assets under custody (AUC) amid the recent recovery in crypto markets. 📈💸

With Bitcoin’s (BTC) value more than doubling over the past year and crossing $1 trillion in market cap, Balance has seen a resurgence in its crypto assets, with clients now exploring new products and offerings, the company said in a recent press release.

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George Bordianu, the CEO of Balance, acknowledged the challenges faced during the bear market of 2022, which caused the company’s AUC to drop from a peak of $2.5 billion to a low of $500 million. He added, “I’m grateful our team was up to the challenge, and rebuilding to $2 billion in AUC is a testament to their hard work and unwavering commitment to our clients.”

💼 Balance is Canada’s Oldest Crypto Asset Custodian

Established in 2017, Balance claims to be the oldest and largest digital asset custodian in Canada. 🍁

The company provides storage services for crypto assets to various entities across Canada, as well as in some US states, the British Virgin Islands, and the Cayman Islands. Its clientele includes crypto exchanges, neobanks, and private funds. 🏦💰

During the 2022 market crash, Balance underwent a Systems and Organization Controls (SOC) 2 Type I audit, which is considered a crucial industry benchmark in the crypto space. The audit, conducted amid market downturn, enabled Balance to serve investment dealers, mutual fund dealers, and portfolio and investment fund managers.

In January, Balance relocated its headquarters from Toronto to Calgary, citing Alberta’s regulatory framework as a compelling reason for the move. Bordianu said Alberta’s regulatory environment offers the necessary structure for Balance to become a qualified custodian without being burdened by regulatory requirements unrelated to its operations, such as deposit-taking.

🌐 Crypto Custody Firms See Surge in AUC

Aside from Balance, other digital asset custody firms have also seen a spike in their assets under custody.

For one, Korea Digital Asset (KODA), the largest institutional crypto custody service in South Korea, has seen a remarkable growth in crypto assets under its custody. Just recently, the company revealed that the value of these crypto assets under its custody expanded by nearly 248% in the second half of 2023.

KODA, which was established through a collaboration between major Korean bank KB Bank, crypto venture capital firm Hashed, and blockchain tech firm Haechi Labs, said that the value of these assets reached approximately 8 trillion Korean won ($6 billion) by the end of last year. This was a substantial increase from the 2.3 trillion won recorded at the end of June 2023.

Meanwhile, institutional investors in the US have turned to spot Bitcoin ETFs in order to get exposure to the booming crypto sector. Earlier this week, daily spot Bitcoin ETF trading volume amounted to nearly $2 billion, the highest level since the first day of trading on January 11.

As reported earlier, spot Bitcoin ETFs witnessed a substantial influx of approximately $2.3 billion last week, nearly doubling the previous week’s inflow of $1.2 billion.

💭 Q&A: What Readers Want to Know

Q: What sets Balance apart from other digital asset custodians in Canada?
Balance differentiates itself as the oldest and largest digital asset custodian in Canada. With a history dating back to 2017, Balance has established its reputation and infrastructure, making it an attractive choice for a diverse range of clients.

Q: What benefits does Alberta’s regulatory framework provide for Balance?
Alberta’s regulatory environment offers Balance the necessary structure to become a qualified custodian without being burdened by regulatory requirements unrelated to its operations. This allows Balance to focus on providing top-notch storage services for crypto assets while complying with applicable regulations.

Q: Are there other digital asset custody firms experiencing similar growth?
Yes, Korea Digital Asset (KODA), the largest institutional crypto custody service in South Korea, has also seen significant growth in assets under custody. As the crypto industry continues to expand, the demand for secure storage solutions is increasing, leading to the growth of custodial firms globally.

🔮 Future Outlook and Investment Recommendations

The recent resurgence in assets under custody for Balance and other digital asset custody firms reflects the growing interest and confidence in the crypto market. As Bitcoin’s value continues to rise and more institutional investors seek exposure to the sector, the demand for reliable and secure custodial services is expected to soar.

Investors looking to capitalize on this trend should consider crypto custody firms as potential investment opportunities. With increased adoption and regulatory support, these companies have the potential to generate significant returns in the long run.

References

1. Bitcoin ETFs Lead Record Miner Reserve & BTC Outflows
2. South Korea’s KODA Sees 248% Growth in Crypto Assets Under Custody in Second Half of 2023
3. Spot Bitcoin ETFs Record Notable Volume on Day 1 as BTC Price Nearly Hits $49K
4. Spot Bitcoin ETFs Expect Day One of Trading
5. Follow Us on Google News

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